Space stocks are names that often capture investors’ imaginations—there’s something romantic about exploring beyond Earth’s atmosphere. For more practical investors, the innovative nature of companies working to blast into outer space can provide some compelling returns—particularly if the company can secure governmental contracts and ensure a consistent stream of profits.
One interesting name in space stocks right now is Rocket Lab (RKLB), which has made more than a dozen successful launches this year and just signed a new contract with the Japan Aerospace Exploration Agency.
RKLB stock is taking off like, well, a rocket in recent days, up 47% in the last month alone. Is it a good investment now?
Rocket Lab, based in Long Beach, California, offers launch services and conducts space launches primarily in the U.S., Canada, and Japan. The company also provides spacecraft, satellite components, and in-orbit management to serve as an end-to-end space company.
The company, which has a market capitalization of $33 billion, offers what it calls launch-on-demand services, including three launch pads and 132 annual launch slots. “Choose your orbit, your rocket, your launch schedule, and your launch site,” the company promises on its website. “You’re in control.”
The company has conducted 73 launches with its Electron two-stage partially reusable launch vehicle, deploying 239 satellites around Earth. It’s developing a medium-lift vehicle, called Neutron, to carry larger payloads.
Shares have soared this year, up 183% on a year-to-date (YTD) basis, by far outdistancing the Nasdaq Composite ($NASX), which is up just 18% in 2025.
www.barchart.com
The company is not yet turning a profit, but its price-to-sales ratio of 52.5 is frothy—investors are paying $52.50 for every dollar of revenue the company makes. Wall Street obviously has high hopes for Rocket Lab stock.
Rocket Lab’s second-quarter earnings showed $145 million in revenue, up a whopping 36% from a year ago. And while the company increased its…
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